FingerMotion Secures $5M Toxic Convertible Note, Buys 9.9% of Lyken AI, Names New CFO
FNGR sits 84% above its 52-week low of $0.17.
Summary
FingerMotion raised $4.3M via a toxic convertible note with a $0.06 floor price, acquired 9.9% of Lyken AI for $500k in stock, and appointed Chris Polimeni as CFO.
Key Events · Financing and Capital Events · FNGR
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Toxic Convertible Note
Issued $5.0M senior secured convertible note with $700k OID, $4.3M proceeds, $0.35 fixed conversion price, 90% VWAP redemption conversion, $0.06 floor price, and 4,092,993 warrants.
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Severe Dilution Risk
Conversion price can drop to 90% of the lowest VWAP, with a floor of $0.06, potentially issuing tens of millions of shares if the stock declines.
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Asset Encumbrance
The note is secured by a first-priority security interest on substantially all of FingerMotion's personal property assets.
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Lyken AI Acquisition
Acquired 9.9% of Lyken AI Computing for $500,000 in stock (1,674,480 shares at $0.2990), marking entry into enterprise AI compute.
Analysis · FNGR · Technology
Already facing a going-concern warning and a Nasdaq delisting threat, FingerMotion has entered into a highly dilutive $5 million senior secured convertible note with a 14% original issue discount and a conversion price that can drop to 90% of the lowest VWAP, with a floor of just $0.06. The note is secured by substantially all assets, and the investor also receives warrants for 4.09 million shares. Only $1.3 million of the $4.3 million proceeds is immediately available; the rest is held in a DACA account subject to release conditions. This financing is a classic toxic death-spiral structure that could massively dilute existing shareholders if the stock price falls. Simultaneously, the company acquired a 9.9% stake in Lyken AI for $500,000 in stock, and appointed a new CFO. The financing is the dominant event: it provides short-term liquidity but at a severe cost to existing holders.
How filings like this one have moved
In the 30 days to Oct 19, 2026, 43.2% of the 271 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.30%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FNGR was trading at $0.31 on NASDAQ in the Technology sector, with a market capitalization of approximately $18.7M. The 52-week trading range was $0.17 to $2.20. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.